| Month | Revenue | Cost of Services | Gross Profit | Marketing | Other OpEx | Total OpEx | Net Income | Cash Needed |
|---|
| Scenario | Current OpEx | Target OpEx | Reduction | Marketing Cut | Other OpEx Cut | Impact Assessment |
|---|---|---|---|---|---|---|
| Scenario 1: Marketing Cut | $4.2M | $2.9M | 30% | -50% | -20% | Lower customer acquisition, moderate risk |
| Scenario 2: Marketing + Ops | $4.2M | $2.5M | 40% | -60% | -30% | Significant growth slowdown, high risk |
| Scenario 3: Aggressive Cut | $4.2M | $2.1M | 50% | -70% | -40% | Major operational changes required |
| Scenario 4: Optimal Balance | $4.2M | $2.0M | 52% | -65% | -45% | Balanced approach, achieves target |
| Scenario 5: Maximum Cut | $4.2M | $1.7M | 60% | -80% | -50% | Survival mode, minimal operations |
Quick wins with minimal disruption
Streamline operations and reduce overhead
Fundamental changes to operating model
| Cost Category | Current Monthly | Target Monthly | Reduction $ | Reduction % | Actions Required |
|---|---|---|---|---|---|
| Marketing & Advertising | $1,600,000 | $560,000 | $1,040,000 | -65% | Focus on organic growth, reduce paid acquisition |
| Personnel Costs | $1,400,000 | $800,000 | $600,000 | -43% | Hiring freeze, role consolidation, offshore some roles |
| Technology & Infrastructure | $600,000 | $350,000 | $250,000 | -42% | Optimize cloud costs, eliminate redundant tools |
| Office & Facilities | $300,000 | $120,000 | $180,000 | -60% | Downsize office space, go more remote |
| Professional Services | $200,000 | $100,000 | $100,000 | -50% | Reduce consulting, legal, and advisory fees |
| Other Operating Expenses | $100,000 | $70,000 | $30,000 | -30% | Cut discretionary spending, travel, events |
| TOTAL | $4,200,000 | $2,000,000 | $2,200,000 | -52% | All actions combined |
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